Supply chain businesses have yet to implement cyber security measures

Though data breaches have affected prominent businesses like Adobe Systems and the New York Times, some industries haven't taken the steps to increase their own cyber security efforts. Even the Department of Homeland Security dedicated a month to educate business owners on implementing additional disaster recovery initiatives.

Why is cyber security a concern to businesses? As using electronic databases becomes a more common way to store work-related data, executives may want to protect company assets from possible data breaches. Any time a data breach occurs, it hurts the organization's credibility with the general public and client base.

In the supply chain sector specifically, businesses rely on multiple vendors daily—one data breach could expose information on many of these companies and their own clients.

A survey from SM100 found that 68 percent of supply chain buyers haven't implemented cyber security measures, despite knowing the risks involved with not doing so. Issues like supplier fraud and delivery interruptions are at stake, but that has not completely convinced supply chain managers.

"Many procurement organizations ask for [a] supplier's policies on contractual areas such as [corporate social responsibility] and these policies go largely unread, unaudited and unanalysed," Natalie Henfrey, principal consultant at Crimson and Company, told Supply Management Magazine. "Unless procurement is prepared to up the understanding and resource behind managing such clauses, their inclusion does not add protection or value."

The issue with this statement is that anyone who uses information technology servers to manage clients' contracts and correspondence has to take steps toward safeguarding this data. Business continuity consultants that specialize in disaster recovery can help companies create an action plan of what to do after a data breach occurs.